In general Who pays a higher percentage of their income in sales taxes?

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2026-03-13 11:30

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In general, lower-income households tend to pay a higher percentage of their income in sales taxes compared to higher-income households. This is because sales taxes are typically regressive, meaning they take a larger share of income from those who earn less, as they spend a higher proportion of their income on taxable goods and services. Conversely, wealthier individuals spend a smaller percentage of their income on these items, which results in a lower overall sales tax burden relative to their income.

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